Question 3 15 points Brockney Inc. bases manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $1.90 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $98,560 per month, which includes depreciation of $19,870. All other fixed manufacturing overhead costs represent current cash flows. Direct labor budgeted hours are below: July August September Direct Labor Budgeted hours 8,800 9,000 9,200 Required: 1. Determine the total manufacturing overhead budget with cash disbursements for July, August, September, and for the Quarter in total. 2. Determine the predetermined overhead rate for July. (Round your answer to 2 decimal places.) Question 4 30 points Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 for January. Collections are expected to be 70% in the month of sale and 30% in the month following the sale. The cost of goods sold is 75% of sales. The company desires an ending merchandise inventory equal to 75% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $20,700. Monthly depreciation is $20,500. Ignore taxes. Balance Sheet 31-Oct Assets Cash $21,500 Accounts receivable 82,500 180,000 Merchandise inventory Property, plant and equipment (net of $591,000 accumulated depreciation) 1,001,000 Total assets $1,285,000 Liabilities and Stockholders' Equity Accounts payable $195,500 Common stock 560,000 Retained earnings 529,500 Total liabilities and stockholders' equity $1,285,000 December Schedule of expected cash collections A/R Beginning Balance November: 70% $320,000 November: 30% $320,000 December: 70% $340,000 November $82,500 224,000 $96,000 238,000 102000 Total Collections $306,500 $334,000 Merchandise Purchases next month's cost of 75% sales ending inventory October January $330,000 247,500 Sales Cost of Sales = 75% of Sales Add desired ending inventory of merchandise Total needs Less beginning inventory of merchandise Merchandise to be purchased November $320,000 240,000 191,250 431,250 (180,000) $251, 250 December $340,000 255,000 185,625 440,625 (191,250) $249,375 $195,500 Required: a. Prepare Cash Budgets for November and December. b. Prepare Budgeted Income Statements for November and December. c. Prepare a Budgeted Balance Sheet for the end of December
